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WorksheetsFINAL LONG QUIZ IN GLOBAL FINANCE
Total questions: 90
Worksheet time: 1hrs 8mins
When was IMF established?
April 13,2004
December 27,1944
December 27,1945
December 31,1945
Who founded IMF?
John Maynard Keynes
Thomas Edison
Carter hamre
Harry Dexter White
Which country currently owes the greatest loan to IMF?
USA
Portugal
England
Mexico
Where is it located?
Alberta
Washington D.C
L.A
Tokyo
What does IMF do?
Promotes International financial stability and monetary cooperation
Helps its members use trade as a means to raise living standards
The principle goal is to ensure that goods, services and labour can move easily across boarders
Promotes work to build better policies for better lives
How many countries are there in IMF?
250
189
191
190
How much in total has the IMF lended to it's membered countries
US $1 trillion
US $900 million
US $1.3 Trillion
US $1 billion
How much in total has the IMF lended to it's membered countries
US $1 trillion
US $900 million
US $1.3 Trillion
US $1 billion
What does IMF stand for
I Miss Family
International Money Fund
International Monetary Fund
International Market Fund
Who was the first country to borrow from IMF?
Germany
Canada
France
China
What is the primary goal of the International Monetary Fund (IMF)?
To promote global political stability
To promote global economic growth and financial stability
To promote global cultural exchange
To promote global environmental sustainability
The IMF is often referred to as a sister organization to which institution?
The United Nations
The World Health Organization
The World Bank
The European Union
Which of the following is NOT a function of the IMF?
Providing economic forecasts
Offering financial assistance to struggling countries
Conducting military operations
Collecting data on national economies
What type of reciprocity is this "expects nothing in return"
Negative
Balanced
Generalized
None of the above
What was the number of original members?
44
36
10
52
When did the IMF sign its first agreement with the U.S.S.R regarding technical assistance?
March 31, 1984
January 5, 1929
July 22, 1944
October 24, 1962
Which country is NOT one of the five largest members of the IMF?
Mexico
Brazil
Russia
India
_____ ___________ occurs when prices among different locations or related goods follow similar patterns over a long period of time.
(a)
A perspective on global history and social change that postulates the existence of a global economic system in which some nations profit while others are exploited.
Globalization
Economic Globalization
Market Integration
Modern World System
Common in tribal and rural communities , Innovation & economic progress is typically low.
individual economies
Global economic integration
Traditional Economy
Command economy
Contains element of tradition, command, and market economy.
Traditional economy
Command economy
Market economy
Mixed Economy
When was the World Bank founded?
1939
1944
1950
1946
The world Bank's goal is to eliminate (a) .
The World Bank plans to eradicate global poverty by ____
2027
2030
2050
2029
Why was the World Bank first established?
To promote the International Trade
To reconstruct the economies damaged during the Second World War
To fund countries in need
None of the above
how many development institutions are there in world bank?
1
2
4
5
world bank provides-
low interest loans
grants to developing countries
investment for education development
all of these
Which of the following is NOT a feature of the World Banks work to support the UN's Sustainable Development Goals?
Providing loans
Providing technical support for reconstruction projects
Carrying out analysis of development options
Supporting countries to pay off their debts
Which country has gone from being a major recipient of World Bank funds to a major donor to the World Bank?
South Korea
Japan
Taiwan
Singapore
Where is the World Bank HQ?
New York
Washington DC
Brussels
Berlin
What is the mandate of the World Bank
Reduce poverty by lending rich corporations' money to poor corporations
Reduce poverty by lending rich countries' money to poor countries
Ensure stability of the international monetary system
Ensure stability of the international political system
What is the mandate of the IMF
reduce poverty by lending the money of rich corporations to poor corporations
to reduce poverty by lending the money of rich countries to poor countries
to ensure the stability of the international monetary system
to ensure the stability of the international political system
What is an element of the World Bank’s enforcement?
borrowing becomes part of the sovereign debt of the borrower
borrowing becomes part of the sovereign debt of the borrower
both a and b are correct
neither a nor b are correct
Both the IMF and the World Bank were created most closely after the end of this world event.
Cold War
WWI
WWII
creation of the EU
________ makes longer-term loans to pay for specific projects related to development or poverty reduction.
World Trade Organization
World Bank
IMF
Federal Reserve
Both the IMF and World Bank structures were created and decided upon at the forum known as
Plaza Accord
Louvre Accord
Smithsonian Agreement
Bretton Woods Conference
At the time of the creation of the IMF, it was normal for a currency’s value to be fixed
relative to other currencies
relative to the price of gold
both a and b are correct
neither a nor b are correct
What type of assistance does the IMF provide to member countries facing balance of payments problems?
Technological assistance
Financial assistance
Educational assistance
Legal assistance
Which of the following is a conditionality that often comes with IMF loans?
Cultural exchange programs
Military cooperation
Fiscal discipline
Sports development
What is one of the criticisms of the IMF's austerity measures and social impact?
They lead to improved social welfare and reduced inequality.
They contribute to increased poverty and inequality.
They ensure a balanced distribution of wealth among citizens.
They have no significant impact on social factors.
What are some common FDI regulations in different countries?
Unrestricted access to all industries
No government oversight on foreign investments
Common FDI regulations in different countries include restrictions on specific industries, limits on ownership percentages, approval processes by government agencies, and reporting requirements to monitor foreign investments.
No reporting requirements for FDI
Discuss the advantages of FDI over FPI.
FDI involves long-term relationship, control, capital, technology, management expertise, economic growth, job creation, stability, and benefits for the host country.
FDI involves short-term relationship
FDI does not contribute to economic growth
FDI does not create job opportunities
Why do countries impose regulations on FDI?
To control the flow of foreign investment, protect national interests, ensure economic stability, promote domestic industries, and safeguard national security.
To promote international cooperation
To discourage foreign investment
To increase unemployment rates
Compare and contrast FDI and FPI in terms of long-term investment.
FDI involves establishing a physical presence in another country, while FPI involves buying financial assets without a physical presence.
FDI and FPI are interchangeable terms
FDI and FPI have the same investment horizon
FDI and FPI both involve physical presence in another country
How do FIIs influence the stock market volatility?
FIIs only influence stock market volatility through government policies
FIIs influence stock market volatility by injecting large amounts of capital and creating buying or selling pressure on stocks.
FIIs have no impact on stock market volatility
FIIs stabilize the stock market by reducing volatility
Which of following are examples of foreign direct investments?
Mergers
Acquisitions or partnership in retail
Vertical FDI
Service & Manufacturing
More expansion of foreign direct investment can boost:
Unemployment
Supply
Employment
Money circulation
Which of the following are benefits of Foreign direct investments?
Job creation
Non- improved new technology
Helping countries with limited resources
No difference in government policies
What is Foreign direct investment?
This is when a country makes an investment into a company.
This is when a company makes an investment into a foreign country and has the right to control.
When a domestic country invest into its own companies.
When a foreign individual invest in domestic stock markets
One possible disadvantage of FDI is
transfer pricing and tax avoidance.
interest payments rising.
the DSR rising.
increased foreign ownership.
When firms invest in the same industry overseas as it operate back at home is called...
Vertical FDI
Horizontal FDI
What is Foreign Direct Investment (FDI)?
A firm invests in government bonds of foreign countries
A firm invests in local businesses within the home country
A firm invests directly in new facilities to produce or market in a foreign country
A firm invests indirectly in foreign stocks
What is the form of FDI known as Greenfield investments?
Forming a joint venture with a local company.
Investing in the stock market of a foreign country.
Establishing new operations in a foreign country.
Acquiring an existing company in a foreign country.
Why do companies prefer to invest in research and development rather than outsourcing?
To enhance their intellectual property portfolio.
To maintain control over proprietary information.
To reduce dependency on external vendors.
To ensure alignment with long-term business goals.
What are the benefits of FDI for a developing country?
Negative employment effects and capital outflows.
Loss of economic independence and control over key decisions.
Outward flow of foreign earnings and learning valuable skills.
Adverse effects on the balance of payments and competition.
What are the advantages of Acquisition in FDI?
Limited control over operations and business strategy.
Difficulty in transferring capital, technology, or management skills.
Quicker execution than greenfield investments and easier asset acquisition.
Increased competition and higher risks than greenfield investments.
What are the benefits of FDI for the host country's balance of payments?
Negative effects on competition and economic growth.
Achieving a current account surplus and job creation.
Loss of economic independence and control over key decisions.
Increased capital outflows and higher imports.
What are the two main types of foreign direct investment?
Real estate investments and venture capital
Greenfield investments and mergers & acquisitions
Joint ventures and portfolio investments
Public-private partnerships and angel investments
How does foreign direct investment contribute to economic growth?
Foreign direct investment primarily focuses on increasing government revenue.
Foreign direct investment boosts economic growth by providing capital, creating jobs, and enhancing technology transfer.
Foreign direct investment decreases economic growth by reducing capital availability.
Foreign direct investment has no impact on job creation or technology.
What role do government policies play in attracting foreign direct investment?
Government policies have no impact on foreign direct investment.
Government policies only deter foreign direct investment.
Government policies are irrelevant to business environments.
Government policies play a crucial role in attracting foreign direct investment by creating a favorable business environment.
What is the difference between greenfield investment and brownfield investment?
Greenfield investment involves purchasing existing businesses; brownfield investment is starting from scratch.
Greenfield investment is only for agricultural projects; brownfield investment is for industrial sites.
Greenfield investment is limited to urban areas; brownfield investment can only occur in rural locations.
Greenfield investment is new construction on undeveloped land; brownfield investment is redevelopment of existing facilities.
How do tax incentives influence foreign direct investment?
Tax incentives attract foreign direct investment by reducing costs and risks for investors.
Tax incentives only benefit domestic companies and not foreign investors.
Tax incentives have no impact on foreign direct investment decisions.
Tax incentives discourage foreign direct investment by increasing costs for investors.
In what ways can foreign direct investment lead to technology transfer?
Foreign direct investment decreases local innovation.
Foreign direct investment leads to technology transfer by establishing joint ventures, bringing in new technologies, providing training, and stimulating local competition.
Foreign direct investment eliminates the need for local workforce training.
Foreign direct investment only benefits the home country.
Out of the following, which is the most rigid exchange rate system, which does not allow any adjustment in the exchange rate?
Flexible exchange rate system
Gold Standard System of exchange rate
Bretton Woods system of exchange rate
None of these
Which of the following is often a motive of firms in the mining industry to enter new foreign markets?
Access natural resources
Skilled pools of labor
Increase refining capacity
Low minimum wages
All of the following are characteristics of foreign direct investment except:
involves substantial risk
simplifies foreign market entry
necessitates significant resources
implies local presence and operations
All of the following are governmental factors that firms must consider when selecting an FDI location except:
market proximity
transparency
bureaucracy
political stability
A firm that builds a new manufacturing facility in a foreign market is participating in which of the following?
Acquisition
Merger
Greenfield investment
Equity participation
Two catering companies that join to form a new, larger catering company are an example of which of the following?
Merger
Acquisition
wholly owned direct investment
international strategic alliance
Successful international retailers most likely have which of the following?
Bilingual managers and salespeople and a sophisticated marketing campaign
A highly developed business plan and an understanding of the target market
Solid capital assets and a minimal cost of foreign and domestic operations
A structured organizational system and the support of local governments
Which of the following is NOT a method of international business?
Joint Ventures
Franchising
Crowdsourcing
Licensing
The card you use to both access funds in your bank account and pay for goods and services is:
a credit card
a birthday card
a gift card
a debit card
Electronic movement of money from one account to another
Electronic funds transfer
overdraft protection
direct deposit
online banking
Electronic banking (E banking), also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by check or cash.
True
False
E-Banking stands for___________
Electronic-Learning
Electronic-Commerce
Electronic-Banking
Amazon
E-Banking can be done from anywhere irrespective of time, If one has _________connection on his computer.
Wifi
Internet
Commerce
Flipcart
The steps to perform E-Banking are:
Open the website of the bank.
Sign in with other E-mail id.
Do the desired transaction.
Open the website of the bank.
Enter username and password.
Do the desired transaction.
Select one advantage and disadvantage in the following:
It is fast and efficient.
Will make very lazy
very good
Your banking information maybe spread out on several devices, Making it more risk.
Fill in the blank:
It enables customers to perform all routine transactions such as account transfers,____________, Bill payment and stop payment requests, and some even offer online loan and credit applications.
Transactions
State bank
Desired bank
Balance enquiries
The grown of Artificial intelligence (AI) does not affect unemployment rate
True
False
Which of these is an example of phishing?
Congratulations you just won a free car! Please enter your credit card number and email below to qualify.
You have just won a free trip to Tokyo! Here are the details below:
Click this link and you will win a million dollars.
Click this link to prevent viruses.
What does FDS, a solution we mentioned in our presentation, stand for?
Fraud detection system
Frame disks selection
Fire Dynamics Simulator
Financial Data System
What is electronic banking also known as?
Manual transfer
Cash transfer
Cheque transfer
Electronic funds transfer (EFT)
What is the main advantage of using a debit card?
Requires the balance to be paid back in a short period of time
Charges interest
Allows you to pay later
Operates like cash or a personal check
What can customers access at all times through internet banking?
Applying internet
Credit card application
Applying loan
Fund enquiries
What is the main advantage of e-banking for banks?
High membership fee
Limited product offerings
Low cost of operation
High incidence of errors
What is the main advantage of using credit cards and debit cards in e-banking?
Offers discounts at points of sale
Allows you to pay later
Requires the balance to be paid back in a short period of time
Operates like cash or a personal check
What is the purpose of automated teller machine (ATM) in e-banking?
To withdraw money from savings account
To perform financial transactions over the telephone
To transfer funds from one bank to another
To exchange financial information between banks
What is the purpose of electronic bill payment in e-banking?
To transfer money to a creditor or vendor
To transfer money from one bank to another
To automate multiple payments
To exchange financial information between banks
What is the purpose of electronic data interchange (EDI) in the banking industry?
To minimize error risk
To offer fund enquiries
To automate multiple payments
To allow fund transfer
